Rebar Near Lowest Since September 2012 as Spot Market Still Weak

Feb 13, 2014 2:40 am ET

Feb. 13 (Bloomberg) -- Steel reinforcement-bar futures in Shanghai closed near a 17-month low amid a weak post-holiday spot market and rising inventory.

Rebar for May delivery on the Shanghai Futures Exchange ended little changed at 3,395 yuan ($560) a metric ton. Futures fell 4.9 percent this year, touching 3,386 yuan on Feb. 11, the lowest close for a most-active contract since Sept. 6, 2012.

Spot rebar tracked by Beijing Antaike Information Development Co. retreated 0.2 percent today to 3,360 yuan a ton, the lowest since July 2. Inventories of five major steel products tracked by Mysteel.com climbed to 17.9 million tons as of Feb. 10, 2.3 million tons higher than the estimate on Jan. 24, according to the researcher.

“The sluggish physical market after the Lunar New Year holiday is not helping,” said Wu Zhili, an analyst at Shenhua Futures co. in Shenzhen.

On the Dalian Commodity Exchange, the steel-making ingredient for delivery in May rose 0.1 percent to close at 854 yuan a ton today. Iron ore for immediate delivery climbed 0.8 percent to $121 a dry ton yesterday, according to The Steel Index Ltd.

--Feiwen Rong. Editors: Sungwoo Park, Jarrett Banks